The effective interest rate for **April 2024 Singapore Savings Bonds (SBAPR24 GX24040Z)** is 3.04% if you held it for 10 years. The interest rate had increased by 0.16% as compared to last month interest rate of 2.88% (SBMAR24 GX24030V).

Singapore Savings Bonds are issued and fully backed by the Singapore Government. The bonds take their interest rates from the average yields of Singapore government bonds from the month before. If you would like to know how the effective interest rate for this month’s issue of Singapore Savings Bonds is computed, you can refer to my previous post on Predict Singapore Savings Bonds Interest Rate.

### When to Choose Singapore Savings Bonds over T-Bills?

The effective interest rate for Singapore Savings Bonds may not be as attractive like T-Bills. However, Singapore Savings Bonds is still attractive in some areas.

First, the minimum amount to invest is low. The **minimum amount which you can purchase the Singapore Savings Bond is low at S$500. **This is unlike buying Singapore Treasury Bills (T-Bills) where the minimum is at least S$1,000.

Second, there is **no lock in period** and thus you can sell it anytime. If you decide to hold and sell this issue of Singapore Savings Bond after 1 year, the effective interest rate is 2.74%. Thus, one of the benefits of buying Singapore Savings Bonds is the liquidity.

Third, Singapore Savings Bonds is a good investment to complement your other savings and investments due to the fact that it is **near to zero risks**. It can also be treated as an emergency funds.

Year from issue date |
Interest % |
Average return per year %* |

1 | 2.95 | 2.95 |

2 | 2.95 | 2.95 |

3 | 2.95 | 2.95 |

4 | 2.95 | 2.95 |

5 | 2.95 | 2.95 |

6 | 2.95 | 2.95 |

7 | 3.04 | 2.96 |

8 | 3.19 | 2.99 |

9 | 3.28 | 3.02 |

10 | 3.28 | 3.04 |

*At the end of each year, on a compounded basis.

### Stocks Café Can Also Track Singapore Savings Bonds

My favourite stock management software, Stocks Café allows me to track my Singapore Savings Bonds purchases.

Stocks Café allows you to create portfolios. You can use portfolio to differentiate your investments. For example, I created three portfolios in Stocks Café, namely Stocks, Singapore Savings Bonds and Treasury Bills. This allow me to categorize how much I allocate for each investment.

### Singapore Treasury Bills (T-Bills) versus Singapore Savings Bonds (SBAPR24 GX24040Z)

The cut off yield for BS24104T 6-Month T-bill is 3.80% p.a. This is definitely higher than 3.04% p.a. that SBAPR24 GX24040Z offered.

Like I shared above, if you afford the minimal amount of S$1000, go for T-bills. If you can only fork out S$500, then investing in Singapore Savings Bonds is still better than not investing at all.

### UOB Stash Account Beats SBAPR24 GX24040Z If You Have 100K

In my recent post, I share that with a balance of S$100,000, the interest rates for each tier under the UOB Stash Account is:

- S$0 – S$10,000 – 0.05% p.a.
- S$10,001 – S$40,000 – 2% p.a.
- S$40,001 – S$70,000 – 3% p.a.
- S$70,001 – S$100,000 – 5% p.a.

Based on the calculator provided by UOB, the estimated interest you will earn is S$3,005.67.

**This works out to be around 3% p.a. on the full balance of $100K which easily beats the effective interest rate of SBAPR24 GX24040Z of 3.04% p.a.**

### CIMB Fixed Deposit Promotion Beats SBMAR24 GX24030V

The fixed deposit interest rates for CIMB Fixed Deposit has fallen slightly as compared to last month.

Tenure |
PERSONAL BANKINGONLINE PROMO INTEREST RATE (%P.A.)S$10,000 AND ABOVE |
PREFERRED BANKINGONLINE PROMO INTEREST RATE (%P.A.)S$10,000 AND ABOVE |

3 months | 3.30 | 3.35 |

6 months | 3.35 | 3.40 |

9 months | 3.15 | 3.20 |

12 months | 3.05 | 3.10 |

### Which Investment To Choose?

The interest rate for Singapore Savings Bonds had started to creep up slowly. If you are looking for short term deposits, go for T-Bills instead of Singapore Savings Bonds.

If you are looking for a longer horizon, this is where Singapore Savings Bonds become attractive at 3.04% p.a. If you look at the 12-month fixed deposit promotion that CIMB Bank is offering, the bank is only offering 0.01% more than what this month’s issue of Singapore Savings Bonds does.

If I am looking long term, I will opt for this month’s issue of Singapore Savings Bonds.